Transcription of The Hartford Agrees to Sell Run-Off Life and Annuity ...
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The Hartford Agrees to Sell Run-Off Life and Annuity ...
The Hartford Agrees to Sell Run-Off Life and Annuity Business to Investor Group (December 7, 2017). On December 4, 2017, The Hartford Financial Services Group, Inc. (HIG) announced an agreement to sell its Run-Off life and Annuity business (dubbed Talcott Resolution ) to six institutional investor groups for a total of $2 billion. The purchase price includes HIG receiving both cash proceeds and a stake in the new company, with the new entity assuming $150 million of debt. The $ billion purchase price compares to total surplus, AVR, and IMR of $ billion for Hartford Life Insurance Company (HLIC) and Hartford Life and Annuity Insurance Company (HLAIC) on a consolidated basis, excluding an $800 million shareholder dividend paid by HLIC in the fourth quarter 2017. Thus, the purchase price for HLIC and HLAIC represents a significant discount to statutory book value1, which may reflect HIG's desire to exit this business (to focus on its P&C and employee benefits businesses) as well as overall valuations of Annuity properties given tepid sales, increased regulatory footprint at the point of sale, and potential volatility of the assumed liability given the ongoing low interest rate environment and adverse impact of any equity market downturn.
volatility of the assumed liability given the ongoing low interest rate environment and adverse impact of any ... • Individual Fixed Deferred Annuities – $4.25 billion. • Payout Annuities - $1.3 billion to $1.7 billion. ... S&P following the announcement of the sale of Talcott Resolution.
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